Choosing Between Monthly, Daily, and Zero Discount Fees for Merchant Services!

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Choosing Between Monthly, Daily, and Zero Discount Fees for Merchant Services!

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Daily Discount Fees Vs. Monthly Discount Fees

What is the difference?

Monthly discount fees are when all your rates and fees are deducted from your bank account on the first day of the month following the month of payment processing. Your merchant statement is so easy to reconcile. Each daily batch is listed on the statement. You can easily reconcile each batch amount on the bank statement to the batch reports printed daily from your credit card terminal or the Z report from your POS tablet or cash register. Just check each day off; 1,2,3 to 30 in minutes.

Make sure you have enough money in your bank account to cover all the fees for the previous month. All your rates and fees are listed on the merchant statement. If you don’t understand something, call your processor, who will be happy to review it all with you. We can interpret any question on any merchant statement, so please contact us at 505-296-2847, even if we are not your merchant processor. We are happy to help.

Daily discount is when your fees for each day’s transaction are deducted before your deposit hits your bank account each day in a batch. This is a nightmare to reconcile because each transaction type has a different rate and different transaction fees. The rate for a debit card is different from a rewards card and is different from a business credit card transaction. There are over 1000 different rates for different cards, different types of cards, and different cards for different industries. It becomes a nightmare because there is no way you can figure out the calculation of the fee deducted from your deposit that shows up in the bank account. Plus, there are multiple transactions, all with different fees deducted, that make up the batch. With daily discounting, the monthly fees from the processor are deducted separately on the first of the month following the month the transactions were processed.

There is an exception to when you might LOVE daily discounting. It is called Zero Cost Processing. Visa and MasterCard regulations have changed to allow merchants to add a custom fee onto receipts for the customer to cover all of your merchant services fees. It is fast becoming an accepted practice. Customers are not giving merchants the pushback they thought they would perhaps receive. The customers have accepted inflation, and they understand that small business owners got walloped by COVID. They want to support small businesses.

Typically, a flat fee is added to each ticket to cover all fees. It is easy to reconcile because there are simply no other hidden fees. All are combined into the flat rate. Some processors charge $10 to $50 monthly for the program, but Electronic Money Company does not.   The very best part of this program is that merchants are saving thousands of dollars in merchant services fees that pass through to their bottom line, and they don’t have to raise their prices for their products and services. Give us a call at 505-296-2847 today and put thousands of dollars back in your pocket right away!

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